When dealing with clients, many of them have a preference about how they’d like to be billed. Some prefer a flat rate, some prefer to be billed only for the hours actually spent on a project. But which one is really the right choice for you?
Flat Rate:
I tend to work on a flat-rate basis only on very simple projects with fewer variables and fixed and rigid deliverables list. Let’s say I’m doing an illustration for use in a company’s brochure (which, in this case, someone else is designing). If I know the desired print size, style, and terms of usage, I can pretty accurately estimate a final cost (based on how long it will take me to finish it, and licensing) and use it as a flat rate. In the estimate, I’ll include a strict working schedule that outlines the structure of the job, how many preliminary sketches, refinements and changes would be allowed before a final is settled on, and a timeline that shows when we each need to provide feedback and revisions to ensure delivery on the deadline. In a flat-rate job, any deviation from the timeline and deliverables list results in added, usually hourly fees.
Pros: Client knows what they’re getting for exactly how much. Ease of use. Offers you the opportunity to learn and apply some time-saving techniques to get you more money for your time.
Cons: Sometimes can end up being more work than you’re getting paid for. May result in rushed quality. May put the client off if they end up breaking the agreed terms, getting charged more than they expected.
Hourly:
The majority of the work I do is by the hour. For me, it’s the safest bet- especially since projects tend to change over time and development shifts scope at the whim of the client. When I give a quote for an hourly job, I try to estimate my time and fees to provide an accurate price range. Everything in my quote is still laid out in detail, but there’s more flexibility in the deliverables list and the client is more aware that if they make changes to the project, it will impact the bottom line. This approach tends to make clients place more thought and consideration into their feedback, respond in a more timely manner, and be more deliberate with their involvement. Just remember to warn a client during production if you begin to approach the high estimate to avoid logging a bunch of hours that may leave your client surprised and horrified at the final bill. Good communication is absolutely essential.
Pros: The client is more aware and accountable for their actions, resulting in better feedback, cleaner content, and fewer revisions. Quality suffers less because you’re getting paid for your time.
Cons: Final cost estimates are a bit more difficult to nail down.
What do you folks think? Which one works better for you? What do your clients respond to more positively?
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